BOJ Gov with a flurry of remarks
- Must maintain low rates for long period to meet price target
- many central banks facing challenge of achieving price targets with less scope for policy response
- BOJ board members agreed at last month's meeting that economic, price uncertainties are high, will take time to hit price target
- BOJ's current forward guidance is framework in which BOJ will decide policy based on data, information available at the time
- BOJ projects economic, price developments to warrant current low rates at least until spring 2020
- There is good chance BOJ will keep current low rates beyond spring 2020 if conditions warrant
- Chinese economy continues to expand firmly but weak signs broadening due to trade friction, it sector adjustment
- Japan exports declining, leading to weakening of output, manufacturers' sentiment
- Weakness in overseas economy yet to spread to Japan's domestic demand
- Japan's economy has become more resilient to external shocks
- BOJ does not expect overseas economy to worsen further
- BOJ must scrutinise without pre-conception risks to its view that overseas economy will recover later this year, underpin exports
- Japan firms may become more cautious on capex if overseas growth takes longer than expected to pick up
- Japan's economy sustaining momentum for inflation to reach 2 pct
